In the U.S., although the Federal Reserve won't be raising rates anytime soon, recent hawkish comments from Fed members have indicated that quantitative easing won't be reupped in June when the current program expires. Some more aggressive Fed presidents, like James Bullard, are calling for a $100 billion cut from the $600 bond buying program.
If rates are raised globally and the Fed stops pumping cash into the system, gold prices could take a hit. Gold prices rose 15.2% in the three months leading up to the Fed's quantitative easing announcement. Silver prices popped 53%
The Fed, and gold prices, will take direction from Friday's jobs number. Expectations are for the unemployment rate to stay at 8.9% and for the private sector to add between 190,000 and 200,000 jobs.
"I expect that if we see a rise higher than 225,000, you will see more expectations of a hawkish stance out of the Fed," says Phil Streible, senior market strategist at Lind-Waldock, "
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